Hmm, I don't get it. I have everything set up correctly but when i compile I only get the errer message "Nothing to compile. If you're trying to start a new project, you have left off the directory argument."

I cd into the actual sass directory and the do compass compile. Is that wrong to do?

For those windows users who might have gotten tripped up - be sure to use forward slashes and not backwards ones. Once I did that, ST 2.1 RC1 worked out of the box without any of the changes mentioned in this thread. I didn't have to fiddle with anything (other than previously installing ruby/sass/etc), just do:

I've been struggling with this SASS stuff the last few days. I've gone and set up my project just like how the guide says to and everything compiles with compass but my icons don't seem to show up, but my custom colour for buttons does work.

Everything looks right to me. The only thing that I can possibly think of is that we're using sencha-touch-1.1.1, would it possibly have something to do with not being version 2?

Edit: Figured this out myself. If anybody did what I did, make sure you're using the .css files from the /css/ folder and not the /stylesheets/ folder (if you have one in your /resources/ folder. Apparently that was added in by accident.